Will I pay income tax on selling a condo?

well did you make a profit? lol if you did and its not your personal residence and you choose to not 1031 it, then yes. If its your personal residence, no, if its a an investment property, then you should be looking into a 1031

Yes, i consider it my main residence. I paid $184K for it. I ripped all the stuco off the front of the condo and replaced it and repainted the whole front of the condo.

Why are you selling the condo? There are reasons for selling that can change the answer to your question.

he'd need to live in it for another 6 months for the exclusion

There would be 225k of gain. Is it in an LLC? How do you own the properties?

Well,

it is complicated. there is a partnership we formed that we have been doing our taxes thru (for the rental income and file a tax return for partnernship and each owner gets an irs from each year that I cant recall the name of K2 or K4?) each owner has a 25% stake in if that makes sense

I am the only one on the mortgage, but all 4 are on the property deed.

all family members in it and all are financially secure, so wasn't worried about me being only one on the mortgage

quote:

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4 owners purchased a condo at the beach 5 yrs ago as investment in an auction, all equal shares. None live there, recreational use only.

We think the market will be at max potential for this location to put on the market next spring.

Purchased for 275k and would look to sell hopefully for 500K.

What would I be looking at tax wise for my portion?

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you said this was a partersnip/LLC with four equal shares.

I would assume your partnership has been depreciating the rental property, so your cost basis is now less than 275K. If you have owned it for 5 years and the full deprecation value is 275K, you have probably depreciated somewhere around 16 percent or so, depending on the months. Using 16 percent, times 275K, Gives you depreciation deductions of 44K. So adjusted basis of 231K.

Selling it for 500K gives you a gain of 269K (assume the 500K is net of any commissions and seller incentives).

Of the 269K, the 44K is called "unrecaptured gain" and is taxed at a rate of 25%. The balance of 225K of gain is taxed at your long term capital gains rate.

As a 25% owner, you would pick up 1/4th of that.

You may also be subject to the 3.8% net investment income tax.

You did not indicate if you had other assets, such as furniture in the condo, which I assume you do. If you sell the condo with the furniture in it, some of the sales price would be allocated to the furniture, and that would change both the gain numbers, as well as how the gains are taxed.

Also, if you had any capitalized fees such as mortgage fees, you would be able to write off any fees not already deducted.